True. The FedResBank has no 'risk' in the money they 'loan'. The amount of 'money' that they loan is not even important to them (they never get it back). It is just numbers on a computer screen and it's only purpose is to produce the 'income' to the FRB of 'interest payments'.
To that end, the FedResBank allows each 'bank' they distribute this printed currency to, to then 'loan' out around 2 and 1/2 TIMES the actual amount of 'money' the bank received.
Why?
Because the 'banks' can pay back more 'interest' to the FRB, this 'profit income' is the only thing that is important and has value to them. That is why they allow their customers (our country's bankers) to lie about the actual 'assets' they have.
This method of fudging the numbers to ensure profit is the actual source of INFLATION.
The bankers of Wall Street are just following company policy.
Where did you read that nonsense?